Individual income tax revenues push forecasting projections upward

Greater expectations of individual income tax revenues by the Nebraska Economic Forecasting Advisory Board resulted in a higher forecast April 28.

The board provides an advisory forecast of general fund receipts that the Legislature uses to craft the state’s budget. The April meeting of the board provides the last forecast on which the state budget will be based this legislative session.

During its February forecast, the board set revenue projections at $3.4 billion for fiscal year 2010-11, $3.5 billion for FY2011-12 and $3.6 billion for FY2012-13.

The board projected that revenues for the current fiscal year would be $82.5 million greater than their February forecast, mostly due to an anticipated $95 million increase in individual income taxes. Sales and use tax revenues and miscellaneous revenues curtailed some of the income tax gains.

Projections for FY2011-12 and FY2012-13 were increased by $91 million and $60 million, respectively. Again, individual income taxes led the growth with projections that were $155 million more during the next biennium than the previous forecast.

Five members of the nine-member board are appointed by the Legislature’s Executive Board and four are appointed by the governor. Appointees must demonstrate expertise in the field of tax policy, economics or economic forecasting.

The next meeting of the board is Oct. 27.